Strategic Position FOR FUTURE YEARS Of Sabmiller Business Essay

In the brewery industry, SABMiller, which has been functioning across six continents, is now one of the world's leading brewers. Regarding of the business enterprise environment, the business has started from a growing country, South Africa, and has effectively got into into both developed and growing market segments through acquisitions and jv. According to the financial report for the last five years, the business is doing quite well (SABMiller, 2012).

For the strategic features, the firm's resources and competences are taken into account. First of all, in 1950, the organization could move its headquarters from London to Johannesburg in order to increase its business in Southern Africa because of the restriction of trading between the country and the international businesses. Second of all, the firm can raise capital through its list on the London stock market. Thirdly, the firm has entered into the global market by acquiring some major brands such as Dreher from Hungary, Miller from USA and developing a joint venture in China. Then, the business also offers made other acquisitions, joint projects and brewery ventures in other countries in recent years. However, acquisition may not be employed for SABMiller ever again in the future because of fewer much larger transformational discounts and lower prospects of high financial of profits. About the management structure of the organization, it practices decentralization as local managers understand deeper about the local businesses (Johnson, Whittington and Scholes, 2011).

3. 2 The new vision statement, quest assertion and the tactical objectives

Vision

The best in the entire world in providing the most various choices for beer drinkers

Mission

Increase product portfolios

Find more business partners

Provide the most comfortable working environment

Strategic objectives

Increase profit to 15 % annually

Increase the deal of high quality beers

Forming more joint ventures with local brands

Upgrade the latest technology in administration and manufacturing.

As time goes on, SABMiller has been growing greater enormously through acquisitions and joint projects, and they have almost earned much profit from these business discounts. Therefore, a fresh vision statement for the organization is usually to be the best in the planet in providing the most various choices for ale drinkers.

In order to support the perspective, SABMiller's quest is to increase more product portfolios for the consumers. The organization will find more business associates to grow bigger and bigger in the brewery industry. The firm provides the most comfortable working environment that employees will be most satisfied and useful by giving the most advanced- technical conditions.

Those missions must be carried out in specific strategic objectives. To begin with, the firm's target is to increase its gain 15 % each year. Secondly, It requires to increase more types of beer, especially international high grade beers to meet up with the increasing demand in emerging markets. Thirdly, it also needs to discover more opportunities for growth with its existing product portfolios through joint endeavors in local brands. Finally, the company needs to up grade the latest technology in administration as well as processing, therefore the employees will feel more convenient and put more effort in their work.

3. 3 Three different possible proper options for SABMiller

The first strategic option recommended for the firm would be the merchandise development, which deliver new products into the existing marketplaces. In terms of Universal strategies, this strategy should focus on differentiation by building more superior types of beverage. The reason is that the beverage consumption keeps growing in these growing markets, and the individuals here are gaining more (Simon, 2012); therefore, they are willing to pay more for his or her drink as well. Another reason is the fact consumers nowadays still like high quality beverage during the financial problems (Nadine and Simon, 2012). Although this strategy will belong to question grades in the Boston's BCG matrix as these high quality beers are completely new products, they are more likely to turn into superstars as the market share is growing, and the consumers can pay more as well. Product development is also a strategy is one of the Ansoff matrix, so SABMiller needs to add more new premium beers to its brand portfolios in the prevailing markets such as in China, Latin America and South Africa, which can be also emerging marketplaces.

The second tactical option would be the market development, which the organization will penetrate into new market segments with the existing products. Despite the fact that the target markets here are Africa and Asia, which SABMiller has recently entered, it can in fact bring more brands from THE UNITED STATES, Latin America and European countries to these countries due to the insufficient its brand portfolios in both of these regions. That is also a cost-focus strategy, based on the General strategies, for the organization as the costs of labor and raw materials in African and Parts of asia such as China and Vietnam are cheaper, so it is an benefit for the business to cut costs in developing. In terms of the BCG matrix, this option also get into a question mark as local brands from Europe, for case, are new in Africa and Asia. However, you will see a higher chance to become a star within a short while as usage is rising up in these areas. Market development is another strategy belongs to the Ansoff matrix as the firm's current products portfolios from THE UNITED STATES, Latin America and Europe are completely new for consumers in African and Asian countries.

The last option, which SABMiller is with the capacity of doing and also has been successful before, is jv. Based on the situation, the firm can consider entering into a joint venture with Dos Equis Brewer Fomento Economico Mexicano (FEMSA) from Mexico, or EFES Breweries International from Turkey. Matching to General strategy, this can be known as a cost-focus technique for SABMiller because these two brands are currently doing alright in emergent marketplaces like Latin America, Africa and Asia; therefore, SABMiller can have a good start as it is also working businesses prosperously in these market segments. Within the BCG matrix, both SABMiller and both of these brands are experiencing high market show and progress in those emergent market segments using their current product portfolios; therefore, if joint venture takes place, there will be without doubt that SABMiller's market show and expansion will raise up continually. In terms of Ansoff matrix, this strategic option actually help SABMiller increase its market show in its current marketplaces, Latin America, Africa and Asia with the existing and mixed product portfolios of both the organization itself and it companions (Johnson, Whittington and Scholes, 2011).

Lower cost

Differentiation

Broad target

Cost leadership

Differentiation

Narrow target

3

2Cost focus

1Differentiation focus

Competitive advantage

Competitive scope

Table 1: Porter's Generic strategies

Market share

High

Low

High

3Stars

2

1Question marks

Cash cows

Dogs

Market growth

Low

Table 2: BCG matrix

Products / services

Existing

New

Existing

3Market penetration

1New products & services

New

2Market development

Conglomerate diversification

Markets

Table 3: Ansoff matrix

Strategic options

1 Product development

2 Market development

3 Joint venture

3. 4 The recommended tactical options for SABMiller

Out of the above mentioned three tactical options, join endeavor will be a great move advised for SABMiller. In fact, the company has succeeded in developing joint ventures with others company, so it obviously shows that the company is with the capacity of doing such kind of thing. Furthermore, both considerable firms for forming joint ventures, FEMSA and EFES, are doing quite well in Latin America, Africa and Asia, where SABMiller is also possessing a good taste using its business, so that it will be an advantage for SABMiller as it could achieve more progress, reduce competition in these markets. In addition, building joint endeavors also helps SABMiller to increase its product portfolios into other current market segments. Last but not least, forming a jv is seen as a safer option as the existing product portfolios are "star" products with high market show, while the other two option might be a little bit riskier as the products and the market segments are new and unstable to strategy successes.

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